Quote:
Originally Posted by Shap
Having been in the industry for 10 years I've met a lot of interesting people. One thing that I find really sad is how bad the average webmaster's money management skills are. I know this is a product of our society as a whole but that doesn't make it right. In our industry this problem seems to be magnified because of the age and amount earned. You've got under 30 year olds making 6 figures a year and having no idea what to do with it. So what do they do? They spend beyond their means. Then one day everything catches up and the ride is over and they have nothing but memories (and maybe some pictures) to show for it.
I've seen it over and over again. I would say the majority of people I know have done a very poor job at saving what they've made. Most of them are living an amazing lifestyle they can't afford and are not that far off of being back where they started.... with nothing. The ride won't last forever. Be smart. Live below your means. Don't try to jump upwards in social class or style of life before you can really afford it. The fall back to reality will be that much harder. The money you make today, if managed properly, could set you for life. Think long term.
The interesting thing is the people I know that are best with their money also happen to be the most successful. It definitely isn't a coincidence. While the poor money managers are blowing money on retarded shit the smart guys are saving their money and waiting for opportunities. When those opportunities come up it's the people with cash that benefit the most. Even if the smart money guys aren't the first to see the deal/opportunity they still usually end up being a part of it. Why? Because if the poor money managers find that deal/opportunity they end up bringing the deal to the guys with money anyhow.
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I think a lot of what you said is true, but I have one overriding philosophy that I live by regarding money.
I own my money, my money doesn't own me. I'm not afraid to risk it all to get more, and sometimes I will loose. Mind you I come from a gambling family..... LOL
To me, and this is just my opinion, it all depends on if you spent the money on yourself or on a business. On yourself is stupid.
I lost a lot on a failed business. I don't regret it. Yes I spent a lot of money in the industry on what looked frivolous; tons of trips, parties, etc... but all were business related. None of those expenses really contributed to the losses I had in another business. I never threw any parties for people outside of my work, and in adult every penny I spent on that all came back to me 100X over.
I blew money on a car, sure it was over $1200 a month lease, but I could have afforded $8,000 or more on that at the time. didn't need it. I blew money on my house, but in the end I could have had a house 5X or more in value, didn't need it. My mortgage was only $1100/month. I always put money away.
I massively overextended myself on a business venture...and it failed for a number of reasons outside of my control. I kept trying cause it had potential and I believed it would turn around, it got worse. I lost all.
sometimes (if you have balls) you have to over extend yourself to go for something, and sometimes it fails. I knew the risks going in. I also had certain assets protected as well. No regrets.
I'll be bluntly honest here, most of the hugely successful people I know have gone broke or lost it all before, or at min had a failed businesses that cost them a lot and really set them back. In my experience it's usually the relatively successful ones, not the HUGELY successful ones, that haven't' ever gone under that wave their finger but won't ever experience 10,000% growth or more in a year cause they didn't have the guts to risk all.
And honestly, and this is just me, but I fucking HATE total security. I like having a rush. and to truly experience a rush you HAVE to loose once in a while to appreciate the wins... I never got into casino gambling huge, I do it with my real life.
just my opinion on money.....